Vanguard vs. iShares: Comparing Corporate Bond ETFs

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The Vanguard Intermediate-Term Corporate Bond ETF (VCIT) and the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB) are two popular corporate bond funds with comparable expense ratios, yields, and risk profiles. While both provide exposure to intermediate-term, investment-grade U.S. corporate bonds, the key differences lie in their fund size and portfolio construction.

Why it matters

Investors seeking moderate income and relatively low interest-rate risk may be considering these two corporate bond ETFs. Understanding the nuances between VCIT and IGIB, such as sector concentrations and diversification, can help determine which fund better aligns with an investor's risk tolerance and portfolio needs.

The details

VCIT holds 2,289 bonds and is heavily weighted toward the financials and industrials sectors, allocating over 80% of its assets to those two sectors. In contrast, IGIB holds 3,001 bonds and has a more balanced sector allocation, with roughly 25% in financials, 12% in consumer non-cyclicals, and 9% in technology. This broader diversification may make IGIB the safer choice between the two funds.

• The data used in this comparison is as of March 24, 2026.